USDA Projects Season-End Inventories: 3 Weeks' Worth Of Corn, 10 Days' Worth Of Soybeans

[hatrack]

U.S. farmers say they will plant some of the biggest corn and soybean crops ever this spring, racing to keep pace with unrelenting global demand that's rapidly depleting stockpiles and driving up food costs.

A government survey found corn plantings would be the second-largest since World War Two and soybeans the third highest ever. But traders focused on a companion report that showed unexpectedly small stockpiles, sending corn prices up by 5 percent. Wheat and soybeans surged more than 3 percent.

EDIT

The USDA reports underscored that U.S. farmers are reaching the limits of arable land in the world's biggest crop exporter, with increased corn crowding out soybeans and cotton. Spring wheat sowing, while among the biggest in decades, could yet shrink. This year's spring planting season in the world's biggest crop exporter is being watched more closely than ever by countries fearful that further increases in already record-high food prices could stoke unrest. Traditionally docile U.S. food prices are forecast to rise a sharp 3.5 percent.

A Reuters analysis of likely plantings and historical yields suggested the corn harvest could be the largest ever, at 13.7 billion bushels, and soybeans the third-largest at 3.3 billion bushels. Even so, corn inventories at the end of the 2011/12 season would equal a three-week supply. Soybeans would dwindle to scarcely 10 days' cover. Analysts say prices must rise high enough to reduce demand.

EDIT

http://planetark.org/enviro-news/item/61649

[sfwriter]

1. Higher fuel costs then... This will drive up fertilizer and fuel demand.

That means higher food costs.

[Newest Reality]

2. "Analysts say prices must rise high enough to reduce demand."

Isn't that another way to say starvation?

[Nihil]

3. Yeah ... I had to re-read that but I suspect you are right ...

Soylent Green by 2050?

(Year chosen just to keep Hatrack happy :evilgrin: )